FX.co ★ XAU/USD, GOLD

XAUUSD Following significant strikes on Iran by the United States and Israel that resulted in the death of Ayatollah Ali Khamenei, gold (XAU) prices opened higher on Monday. Global uncertainty and geopolitical risk were sharply increased by this incident. With extreme volatility, gold jumped to $5,390 at market opening. This escalation caused investors to stampede into gold as a safe haven asset. Soon after, Iran launched missile attacks, intensifying the conflict. These days, markets fear more protracted and unstable conflict. These factors suggest that until there is a de-escalation, gold prices will continue to rise. Gold is also receiving a further boost from inflation statistics. January's higher-than-expected increase in U.S. producer prices suggests that inflation may increase in the months ahead. The US producer prices rose 0.5% MOM in January 2026, according to the data below. Additionally, service costs went up by 0.8%, the highest since July. Increased inflation reduces real returns and increases the appeal of gold as a hedge. The price of spot gold is currently trading within an ascending broadening wedge pattern, according to the daily chart. In December 2025, the ascending triangle pattern formed by the same structure was broken. A powerful bottom was created, and a strong surge toward $5,600 was started by a pullback back toward the ascending triangle's support at $4,300. The price of gold is currently aiming for $5,600 as the immediate resistance since it broke $5,090. The growing geopolitical turmoil, however, is probably going to push it above $5,600 and pave the way for $6,500. Given that the price is above the 50- and 200-day SMAs, the gold market is expected to continue its upward trend. Above $4,400, the spot gold 4-hour chart likewise displays a robust bullish pattern. A spike towards $5,600 in the coming days is suggested by the consolidation between $4,770 and $5,100 and the breakout above $5,100. A push towards $6,500 will be possible if there is a break over $5,600.